Car Insurance Cancellation Fees

Tina_Arena101

Hi All,

This is my first posting on this website - so please bare with me

Yesterday evening (1st Jan 2013) I purchased car insurance online, when I received the email confirmation I realised that the engine size was wrong. I don't know how I missed it, the number plate etc was all correct. I tried to ring straight away but they were (unsurprisingly) closed and so I rang at 10am this morning. They were very unsympathetic and made me pay just shy of £50 to cancel it, (£20 admin set up and £25 to cancel) despite the fact it was not due to start till the 03/01/2013.

They would not back down and so I accepted it as I needed to cancel it but I feel that this has been quite harsh. I have written a letter to their complaints department but I was wondering what people's thoughts/advice might be on this? I realise it was my oversight but I also feel quite upset about it as this year was meant to be me getting debt free and this is not a very good start!



Any and all advice welcome!

Quentin

£45 is cheaper than many charge these days to cancel.

(Why didn't you just correct the mistake instead of cancelling?That would have avoided the £25 cancellation fee) )

Tina_Arena101

It was cheaper to go elsewhere (even with the £50) then it was once the difference was applied following the change I needed to make to the policy...

Quentin

Well.......sounds like you were better off allround, despite your (self confessed) error!

And you agreed to pay their charges when taking out the policy, so really no valid complaint.

(But if you keep your complaint going there's a chance they will make a goodwill gesture as a business decision to stop you escalating this to the FOS which could cost them far more than the £45!)

Tina_Arena101

So, I'm doing the only thing I can do and should stick with it?

Seems crazy to be charged such a high amount for a Policy that had not even commenced... Also, it seems incredibly dodgy that they didn't run a check on my number plate to confirm the engine size.

Quentin

They have charged you less than many to cancel, and you say you found a cheaper policy overall anyway, so why not stick with it?

This seems all your fault for not checking the details, (and they have incurred costs thanks to you), so you have no real grounds to grumble.

(Though let your complaint progress - you have nothing to lose)

Tina_Arena101

Well... I hope you never miss something and it bite you quite so badly

dwsjarcmcd

Tina_Arena101 wrote: »

Also, it seems incredibly dodgy that they didn't run a check on my number plate to confirm the engine size.

It usually doesn't work like that. When you input your registration number there are various systems that look up the DVLA database and return details of what it thinks is your car. It is not unknown for this to be wrong (in fact it's fairly common) e.g Manual when it's auto etc.

You can change this if the details are wrong, however, even if the Insurer checked it, they would only get the wrong answer.

Tina_Arena101

That's the thing though... the details AREN'T wrong...! :-|

Tina_Arena101

I have not attempted to dodge responsibility for the mistake however I feel this is not a fair amount of money to take for the time and effort that has been invested from their side.

The Financial Ombudsman also states:

"The Financial Ombudsman Service, the independent complaints arbitrator, says charges must reflect the true administrative cost, while there have been reports of MoneySavers successfully challenging such fees."

Source: http://www.moneysavingexpert.com/news/insurance/2010/09/consumers-urged-to-fight-rising-insurance-admin-fees

I am and have always been happy to pay a fair price for their time.

dunstonh

I have not attempted to dodge responsibility for the mistake however I feel this is not a fair amount of money to take for the time and effort that has been invested from their side.

You may consider it unfair. Doesnt mean others will.

The Financial Ombudsman also states:

"The Financial Ombudsman Service, the independent complaints arbitrator, says charges must reflect the true administrative cost, while there have been reports of MoneySavers successfully challenging such fees."

Source: http://www.moneysavingexpert.com/new...nce-admin-fees

I am and have always been happy to pay a fair price for their time.

If you go on to check the FOS publications you will also see that they have such an example published and that was £50 and they considered that fair and reasonable.